Tag Archives: contactless payments

The Internet of Things has exploded over the last couple of years as smartphones and the ability to be always connected has become an increasingly integral part of our lives. Bonnie Cha at re/code describes the Internet of Things as “the connection of everyday objects to the Internet and to one another, with the goal being to provide users with smarter, more efficient experiences.” You can see her “Beginner’s Guide to Understanding the Internet of Things” here.

Google’s acquisition of Nest last year set the stage for IoT to expand this year and the conversation about IoT’s impact on everyday life was discussed widely at CES. Consumers are increasingly aware of connected homes and cars. A study by Affinnova showed that consumers mostly want connected home appliances and products like refrigerators that enable remote viewing of your contents and recommends recipes, smart light bulbs that notify you when a bulb has gone out and connected sprinkler systems.

But how is the Internet of Things impacting retail? First, connected home sensors that send notifications to your phone to indicate when you out of a product like washing detergent, milk, or light bulbs are great for retailers. Creating a easy way for consumers to order these products right from their phone means that retailers have the opportunity to improve customer experiences and loyalty.

Next, connected technologies like beacons and NFC will likely increase in 2015. These technologies enable retailers to communicate with consumers in a meaningful way based on their location, delivering deals and notifications that are relevant in real time. The iPhone 6 and ApplePay will also influence retailers to adopt NFC technologies for easy checkout experiences.

The most important thing for retailers to take advantage with the Internet of Things right now is data. Whether connecting your products to home sensors or using in-store location technologies, analyzing data will enable retailers to better understand their customers. When are they shopping? Are they accessing your app while in store or at home? Do they prefer app notifications, or SMS? The more brands and retailers understand their customers, the more they will be able to connect with them at the right time, place and in the right manner.

The ability to use mobile in marketing campaigns brings heaps of opportunities to increase retail sales. At Tactify, we believe that independent stores should be able to have campaigns that are as innovative and impactful as multinational stores. No matter the size of your store or staff, there are a number of ways to increase sales and expand your brand.

First off, there are huge benefits to incorporating mobile into your marketing campaigns. Almost two-thirds of Americans own a smartphone – and 55 percent of consumers who use coupons on their smartphone end up spending more money in store or online than they originally anticipated. A new study showed that mobile plays an integral part in the shopping experience of millennial moms– with a third saying mobile played a part in the inspiration and research part of shopping, and half saying they turned to their phones in-store to communicate with friends and family about their purchasing decisions.

So how can you increase your retails sales with mobile? Here are a few options:

Send push notifications using geofencingor beacon technologies to communicate with your customers based on their location.

Use NFC stickers or QR codes around the store offering coupons and reward points.

Reward customers who check in on social media and/or share their purchases with friends. Use NFC, QR and push notifications to make this even easier.

For iPhone users, integrate coupons and rewards cards with Passbook. Customers can easily save and access these on their phones (without a separate app) and eventually this will link to ApplePay.

Integrate your social media with coupons and rewards to redeem in-store or online.

Stay on top of the latest technologies like ApplePay to give customers the easiest and fastest check-out experience.

With any marketing campaign, make sure to use analytics to constantly evaluate and optimize your campaigns. Test which tactics get the most engagement with your customers and result in the highest ROI.

NFC is not a new technology but it has been gaining traction in the market over the last few years due to NFC-enabled credit cards and mobile phones. There is speculation that Apple will finally adopt NFC in the iPhone 6 — at which point, NFC might reach widespread adoption among consumers. However, the NFC rumor mill hits every time a new iPhone is about to be released. Nonetheless, the number of NFC-enabled Android and Windows phones is growing, and with that, we have seen an increase in the ways brands and consumers are experimenting with the technology.

How does NFC work?

Getting down to basics, NFC, or near field communication, transmits data wirelessly between two objects equipped with NFC chips. The two objects have to be brought within close range, usually within four inches, in order to communicate and can transmit any information.

Is NFC just for payments?

No! Technically, you can use NFC as long as you have two NFC compatible objects. Brands have used NFC for ticketing at events or while traveling, opening car doors with NFC-enabled security badges and car keys, tracking healthcare information, and in marketing and advertising campaigns. It can be as simple as placed an NFC-enabled sticker within a retail area that links to coupons, rewards, ads or movie trailers, social media pages, mobile apps and more. NFC extends to personal use, too. Place an NFC sticker near your front door, wave or tap with it your phone and turn the air conditioning on. Trend Blog put together a great list of 18 creative ways to use NFC.

Will NFC keep growing?

Yes. The number of NFC compatible devices increased 128% from 2012 to 2013. IHS Technology predicts that two in three devices will be NFC compatible by 2018. Plus, VISA Europe saw their contactless payments increase four fold in 2013. While brands are starting to experiment with beacons, NFC still has its own specific use and purpose. It’s cheaper and works within a much more specific location than beacons.

What’s the security like?

NFC only works within a close range — usually four inches or less — and the signals are very specific. In order for a hacker to get a hold of your information, they would have to be extremely close to your phone or credit card. In addition, any data stored on your phone like credit card information is encrypted and usually has a number of added security features like pins and passwords. Get a full explanation of NFC security here.

Bottom line, NFC is here to stay but there are a multitude of other technologies disrupting the space. When it comes to designing a marketing or advertising campaign, make sure to consider your goals, budget and customers when deciding which one to use.